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Leveraged Loans

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Despite the allure of lower loan prices, CLO managers should print deals cautiously
Software loan sell-offs and the Iran war have caused US and European loans to price differently
Leveraged loans in stressed sectors like software carry refinancing risk
LBO financing includes $5.75bn term loan to be priced early next week
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  • Leveraged loan bankers said that eurozone debt crisis had not dampened the appetite of investors to buy new paper after JP Morgan, Natixis and Royal Bank of Canada launched €462.5m of senior loans backing the buyout of Global Blue into syndication at a bank meeting on Wednesday.
  • The debt management arm of private equity firm 3i has followed up its acquisition of €2bn of CLO contracts from Invesco with the hire of Andrew Bellis, Credit Suisse’s global head of new issue collateralised loan obligations, writes Olly West.
  • Swedish construction firm Skanska has signed a new €600m five year multicurrency revolving credit facility, after the deal was syndicated by Nordea, SEB and Svenska Handelsbanken.
  • Turkish borrower Akbank launched its annual one year summer loan into syndication on Tuesday. The borrower is looking to refinance a $1.3bn-equivalent loan signed in August last year.
  • Suek is the second Russian credit to make a quick return for a large loan this year. It is a decision that risks straining relationships and frustrating all concerned.
  • More than half of the banks in German satellite broadcaster ProSiebenSat.1’s revolving credit facility have agreed to extend the maturity of the facility from July 2014 to July 2016.